3. Corporate Social Responsibility and Citizenship

Social Enterprise

-A business that adopts social benefits as its core mission -An organization that uses business strategies for the purpose of improving human and environmental well-being

Social Audit Standards

1. Company standards set expectations of performance --> Apple 2. Common industry-wide standard --> Electronic Industry Citizenship Coalition 3. Global nongovernmental organizations or standard-setting organizations --> International Organization for Standards

Corporate Social Responsibiltiy

A corporation should act in a way that enhances society and its inhabitants and be held accountable. Should acknowledge harm, correct it, and may forgo profits.

Social Audit

A systematic evaluation of an organization's social, ethical, and environmental perfomance

Corporate Power

Capability of corporations to influence government, the economy, and society, based on their organizational resources

Triple Bottom Line

Occurs when companies don't just report their financial statements to their stakeholders (annual report), but also their environmental and social impacts.

Social Reporting

When a company decides to publicize information collected in a social audit

Phases of Corporate Social Responsibility

1. Corporate Social Stewardship (1950s-1960s) 2. Corporate Social Responsiveness (1960s-1970s) 3. Corporate/Business Ethics (1980s-1990s) 4. Corporate/Global Citizenship (1990s-2000s)

Enlightened Self-Interest

It is in the company's self-interest in the long therm to provide true value to its customers, to help its employees grow and behave responsibly.

Reputation

Refers to desirable or undesirable qualities associated with an organization or its actors that may influence the organization's relationships with its staekholders

Global Corporate Citizenship

Refers to putting an organization's commitment to social and environmental responsibility into practice worldwide, not only locally and regionally.

Bottom Line

Refers to the figure at the end of a company's financial statement thats summarizes its earnings after expenses.

Social Entrepreneurship

When a person or group of people identify a social need and use their entrepreneurial skills to address this need. Unlike traditional entrepreneurship, social entrepreneurship creates and sustains social rather than economic value.

Transparency

When companies clearly and openly report their performance - financial, social, and environmental

Iron Law of Responsibility

In the long run, those who do not use power in ways that society considers responsible will tend to lose it

Stages of Corporate Citizenship

1. Elementary - Jobs, profits, taxes 2. Engaged - Philanthropy, environmental protection 3. Innovative - Stakeholder management 4. Integrated - Sustainability or triple bottom 5. Transforming - Change the game

B Corporation

Also called a benefit corporation - a new type of corporation that seeks to blend its social objectives with financial goals. Must prove its socially responsible by meeting independent social and environmental performance B Lab standards.